Chainlink is a crypto project that has been hitting the headlines of late. The crypto recently surged by a huge margin before slowing down to trade at around $18. At the moment, Chainlink is number 5 on the chart according to CoinMarketCap. It has a market cap totaling $6.5 billion and a trading volume of around $1.9 billion. Chart data shows that the crypto currently dons a 10% price increase on the day.
While Chainlink has attracted the attention of many as it seems to have taken the market by a storm, there are those who don’t seem to buy into its massive hype. One of these entities is ‘CryptoWhale’, an investor, and entrepreneur. The trader sent out a twitter post warning people not to fall for the crypto’s hype, saying that the coin’s current dynamics are a direct mirror to what happened with Altcoins back in 2017.
During the 2017 ICO bubble, 99% of Altcoins did exactly what #ChainLink is doing now:
1. Grows rapidly
2. Becomes Overbought
3. Everyone FOMO’s in
4. Huge Sell Off
5. Price corrects 99%
6. Noobs bagholdDon’t be fooled. Price =/= True Value! pic.twitter.com/n1YOLsfEyn
— CryptoWhale
(@CryptoWhale) August 14, 2020
Going on, CryptoWhale highlighted 6 factors that make Chainlink a bubble waiting to burst. In his opinion, such cryptos grow too fast, are overbought, create huge FOMO, lead into huge sell-off, have a 99% price correction, and leave the unsuspecting buyers holding huge bags of cryptos with diminishing value.
Apparently, this is exactly what happened with Altcoins after the historic crypto bull run of late 2017. Right after, a dumping season ensued, resulting in some of the Altcoins losing over 95% of their all-time high value.
According to a crypto fan contributing to the twitter discussion, Chainlink is the number one project in terms of the number of developers commits on Github. However, according to another user, the many commits are a result of the same code being edited numerous times.
As expected, the sentiment by CryptoWhale was received with mixed feelings from fans. There are those who support the crypto while others are behind the opinion raised in the tweet. Granted, this is expected in a free and dynamic crypto market that has grown to be very competitive over the decade of its inception.
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